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Confusion

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Confusion

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by Kim Smith.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • September 5, 2021 at 3:58 pm #634475
    faisal8
    Member
    • Topics: 16
    • Replies: 6
    • ☆

    Which of the following supplier balances would indicate a high risk in relation to the COMPLETENESS of the
    liability recorded at the year end?
    A A supplier with a high balance at the year end and with a low volume of transactions during the year
    B A supplier with a low balance at the year end and with a high volume of transactions during the year
    C A supplier with a low balance at the year end and with a low volume of transactions during the year
    D A supplier with a high balance at the year end and with a high volume of transactions during the year

    This question had 2 separate answers, in past paper it says B and in BPP text it says D

    September 5, 2021 at 5:33 pm #634486
    Kim Smith
    Keymaster
    • Topics: 133
    • Replies: 8294
    • ☆☆☆☆☆

    Looks to me like a typo in BPP’s text. A low balance has greater potential for understatement (i.e. due to omission, transactions are incomplete). If a balance is high, it is far more likely to be complete.

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